to block websites such as facebook calling them tools of western soft war, and this shows off an old photo of the ayatollah modified through instagram. the state department reports that they will keep an cry on the page. a comment reads gratitude to my compassionate leader and another "death to dictator." that is it for "studio b" on a wednesday afternoon. we are back later for the fox report at 7:00 eastern and 4:00 pacific. the dow, well, off about 100. there is a fear of some kind of falling off a cliff or something or maybe washington is just horrible. maybe. >>neil: son of a...the rating agencies says the way these guys are dilly-dallying on the cliff, we still could see our credit rating take a dive. deal or though deal?

welcome, everyone, i am neil cavuto. i think that was the way of telling washington quit playing us for fools and thinking this finger pointing is winning you friends. it is costing your country. leaving aside a major credit rating calling the politician's bluff did this hint if they come up with a keel that is stupid this will be hell? charles payne says that downgrade could be coming no matter what. warm, -- charles, what will happen? >>guest: the debt ceiling debate, july 29, they come up with an agreement and the president signs it august 2, and we are downgraded after the president signed. the deal was signed and it was done, they point to a lack of faith in the leaders and in washington, dc. they are saying the same thing. when i read that, and the quote

is deficit cutting plan, you mention playing us as fools, we they just give it or wink sore say, guys this is not a real deal. >>neil: 9 rating agencies are under pressure since the housing problem, they will be extra cautious. you mentioned s&p downgrading and a debt deal that it deemed incoherent, dysfunctional and in the end the cuts were not real. what if we get a deal like that again, you say, we are worthy of getting downgraded because we have not really addressed the problem? >>guest: it is about the deficit, and debt, and $16 trillion and counting and everyone knows all the gimmicks, on both sides, will take us to a point where it is $16 trillion committee will be at $20 trillion. a year or two?

at this point it is not sustainable. >>neil: you want a path where spending or the rate of growth of spending is going down? >>guest: actual rate of spending is going down. not the assumption that we will spend $1,000 next year, but we cut spending because we cut it from a long-term baseline assumption. no more gimmicks, we have to have spending cuts. if you look at the other countries such as greece and portugals of the world, and you get 65 percent or 70 percent debt to g.d.p., it is a red flag and 95 95 percent, that is a problem but our number will be so gigantic it is hard to understand how question have a vibrant economy when we pay $1 trillion a year in interest. >>neil: the markets seem to fall the lack thereof of the talks. is that a sign they are worried? >>guest: the market is worried

the market wants closure of the debt ceiling. they do nut want this part of negotiations. we saw what happened last year, disaster. whatever deal is cut, the most important thing for wall street is the debt ceiling debate goes away for a year or month. >>neil: i think speaker boehner speaking to reporters today on what his plans were, i want you to react. >> tomorrow the house will pass legislation to make permanent tax relief for nearly every american and the president will have a decision to make. he can call on senate democrats to pass that bill. or he can be responding for the largest tax increase in american history. >>neil: is this his way of saying, it is in your cart. >>guest: he took the president's argument. when the president spoke he talked of people making $700,000 a year not needing a break, frankly, if you pay $245,000 a

year in taxes i don't see where that is a "break." it doesn't feel warm and fuzzy do me. >>neil: the president is moving. speaker boehner is moving. could a deal still happen? >>guest: absolutely. the president went down to $600,000 and maybe half a million is the number and a few other things like unemployment insurance and alternative minimum tax patch but now i am thinking something will actually happen. it will not mean anything to the country with respect to where we are going in the real crisis of too much spending this walk. >>neil: that could still get us downgraded. did the president bush this too far? >>guest: if this past week has done anything it should give us perspective. if there is one thing we should have after this week, it should be a sense of perspective about what is important. i would like to think members of

the caucus could say to themselves, you know what, we disagree with the president on a bunch of things and we wish other guy had won, we are going to fight them on a whole range of issues over the next four years and we thing his philosophy is all exclude up but right now what the country needs is for us to compromise. >>neil: republican congressman was offended the president would use the school shooting tragedy in connecticut to push his agenda on the cliff. congressman, it did take some people back. >>guest: well, he did a beautiful job at the service starting off and finishing but he could not get away from making political jabs. it is no surprise he would use something like this. that is why some of us had to

stand up and say quit fighting your antigun battle and deceiving people on what the issues are but talk about the fact, and when he says compromise, keep in mind, speaker boehner went whole tell. okay, mr. president, you were demanding $800 million in additional revenue, just go ahead and do that and get that out of way and he says that was back then now i am at $1.6. that is his idea of compromise? i remind you that back at the end of july a year and a half ago as charles alluded to, there were people including our republican leadership that said the super committee will reach an agreement. some of us are saying well of course it will not reach an agreement, the president and harry reid do not want an agreement. john thune or someone made a proposal on the table with revenue and a couple of says said, this is a breakthrough and we will get a deal because of there and they talk to obama and

harry reid and come back, sorry, and that is for political reasons. >>neil: it is one thing for the president using the shooting to say we have to address violence in our society but i do want to talk about now he is trying to say that the prevailing mood that exists in this country does not allow, i think, for much debate or opposition so either go along with me or you look like you are not in sync with the public mood. that is a --. >>guest: it is worse than that. he is inferring go along with me or you are creating more havoc for the deaths of the poor children. >>neil: what he is saying, congressman, given the mood we are all coming together, the party coming together is for

republicans to field and creed do -- cede to his wishes. >>guest: obviously i have a huge problem with that charles allude asked he mentioned the s&p said we are too ineffective in congress, actually, what they said is, you either cut $4 trillion over 10 years or you will be downgraded and they kept their word because we did not cut $4 trillion. what are we doing if this bill? the president doesn't want real cuts he wants more stimulus spending and he is willing to use this tragedy in newtown to say, jump on board and give me all the stimulus and raise taxes only on the people i want to raise taxes on? come on, let's do the right thing for america. that is what ought to be coming from the tragedies, not a president saying it is my way or the highway. his idea of compromise is get on board or you part of the

problem. we have to have spending cuts. that is the bottom line. >>neil: thank you, congressman. >> four more americans are laid to rest, pastor rick warren on helping a nation to heal. , we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's anothereason more investors are saying... [ all ] i'm with scottrade.

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>>neil: in the wake of the connecticut shooting, growing calls to arm school employees

with my guest bring up a bill that will call on certain individuals to carry weapons. could this bill pass, sir? who would the individuals be required to carry a weapon. >>guest: this is a very modest proposal where i am asking each school division in virginia to identify either teachers or school personnel, many who have had military training, to be certified by the kept of criminal justice services which trained all of our state police and local police and sheriffs for competence and safe handling of a gun. this is so modest. this is the utah department of public safety. the third question down, who can carry or where can you carry in utah any person who has a concealed carry permit in utah can go on a public school ground fully amended and loaded. i am not doing that. i am saying you have to be designated by the school to do this. if you don't want to you don't have to but we making a mandate

like we did requiring them to have someone on campus to be able to administer one of these plans if you have a problem, it is very simple. this is a practical answer to people would don't respect laws. >>neil: so it would not necessarily be the principal who would be armed but it would be someone designated by that school or by that superintendent who could carry a weapon? >>guest: you have to pass the threshhold test. if you don't you do not do this. >>neil: what is the test? >>guest: the standard we apply to the state police, the department of criminal justice services administers training for the safe and proper use and accurate use of firearms, to everyone in virginia. i am asking the same agency of the commonwealth to take the people designated by the schools and train them the same way they train the sheriffs, the deputy sheriffs, or the state police.

>>neil: do you ever fear, though, naviry good -- every good intention has a bad turn, the person you are designating could be a threat. >>guest: you have to go through a background. humans scoot up the garden of eden. we have a situation where you have more threats because we pulled god out of schools, we pulled morals out of school, we don't have right and wrong in school. we need a backup. criminals know where they can go safely and not be threatened. the murder are in aurora, there were seven movie theaters in his city and only one had a signposting no one with concealed carry weapons, guess which movie theater he went to? only the one with the sign. it was safe if him to kill there until the cops came.

look, why do you call 911? you want someone with guns to come defend you. >>neil: before we fight about how to prevent another tragedy do we need to heal from this tragedy? pastor rick warren is here. next.

>>neil: four victims laid to rest today with a nationwide debate on how to prevent a tragedy like this from happening again. the plan who brought us a purpose driven life trying to fad this sense of violence, pastor rick warren. very good do have you, pastor.

a lot of folks have been doing a lot of that soul-searching, wondering where is the purpose in that? in all this violence? in all this bloodshed? little children and a shopping mall only a few days earlier and a theater a few months earlier, on and on. what do you say? >>guest: you are right. we have had seven major mass shootings since april and our nation is grieving from two sandy: hurricane sandy and sandy hook elementary school. time magazine called this the massacre of innocence and that is a term from the bible, 2,000 years ago the first christmas where king herrod killed all the babies under two, there are long term babies we have do feel

with, four i know of, to stop this violence. first we have to deal with the short-term factors and that is the grief of the people who have lost them. our hearts go out to them. the deeper the grief, the fewer words are needed. a lot of people are looking for wisdom or the right word and they say, what do you say? there is nothing to say. you just need to be there and show up. when people grieve they don't need a lecture and they don't need a explanation because that does not comfort us. what comforts us is the presence of others, the presence of god. the first thing we have to do is learn how to release our grief. we need to do that now. >>neil: i am not saying evil is winning, but it is getting an upper hand. >>guest: evil is real. people want to ignore it until this shows up and we want to

public god to the side lines. no one was bothered by teachers praying with their students during hurricane sandy, the attack, at sandy hook elementary school and no one is bothered when a politician whether it is a president or someone else reading scripture or praying at these times but it needs to be more than just those times. grief is a good thing for us, a transition that helps us move through the loss of life and if you don't green, if you stuff it down only, what happens it comes out sideways later on in life. you don't repress it, you don't suppress it. what you do is you express it and you confess it. we do need to deal with evil. no doubt. but there are multiple issues in the shootings. there is the psychological issue of mental illness. we are not taking care of the

mental i will like we ought we - mentally ill like we ought to, and there is the social and public safety issue, and, yes, there are ak-47 assault rifles people using to assault people. we need to deal with that. but there is will the culture of violence where kids are raised and by the time they are 20 they have shot down 20,000 or 30,000 people on video games and that is entertainment. of course the area i work in is the expert you'll -- the spiritual issue, when people's lives are e and they do not know the difference between right or wrong these things happen. it is not just one issue. but we have to start with the families. their grief. >>neil: a lot of folks are talking about why this happened and even with god, it is free

will and humans have choice and god has given that ability to us for our good or peril and the same applies, i guess, to what is our entertainment and we have the freedom to look and examine anything that is out there but is there a limit to that? >>guest: there is a verse in job where he says i will set no wicked thing before my eye. that is good. some of us may want to tape that on our video games and television when we flip channels or choose games. the old computer idea of garbage in, garbage out is true, you cannot fill your mind with negative things and not have it affect you. i see three things you can fill your mind with: one is stuffing. just stuff. this is brain food, which is actually good for you, it helps you grow. and there is poison. and things you should not put in

front of your eyes. some people are so open minded they health anything in, like a freeway in their mind, and what we think affects how we feel and that affects how we act. it is bound to affect us even if it is desensitizing us. maybe you are not going to go out and commit a murder but it desensitizes you to murder. >>neil: would you savor censoring the materials? >>guest: i believe there are some materials that should not be in the hands of children. we are in a country where people make moral choices. because god gives me a moral choice we ought to give other people a moral choice but some things are bad for our society and we have gotten beyond the idea that there are some things that are right and some things that are wrong. clearly a culture that we enjoy violence is an issue. but it is not just that. even if you did nut have automatic of these things there

would be mental illness and that is an issue we have to deal with, it needs to be brought to the table and in our state of california, many years ago, there were way too many people locked up in institutions. our state went overboard and released them all and it is almost impossible for people to get help when they have family members who need mental stability. >>neil: this is your 10 10th anniversary of a "purpose driven life," it moved amation and it moved a lot of people closer to god and i am thinking of this young teacher at the school who sacrificed her own life to protect the students. she was living a purpose driven life and doing everything right. >>guest: without a doubt. >>neil: and this is what happened. can you blame people who step back if that and say, how could

god less that happen? how could god less the children who barely started life, so cruelly see it end? >>guest: this is one of the -- the issue of suffering and evil goes back to the issue of free will. you have mentioned it. our greatest blessing is also our greatest curse. god did not make us puppets. we could have been puppets where we never did anything wrong and we always did what was right but god wanted us to choose to love him and in giving us a choice i often make bad choices and so do other people. much does. it is called "sin." because of that, everything in this world is broken. nothing works perfectly. the weather doesn't work perfectly, the economy doesn't, our bodies don't work perfectly, our minds don't work perfectly. as a result we live in a broken world where there is sin. when these things happen, people have a choice: you can run to

god or you can runaway from him. i see both as a pastor. >>neil: but you could turn it around, i don't mean to be disrespectful if people looked at this and say, there have been miracles in the bible, sometimes when god has interveneed and they wonder why didn't you intervene now? why didn't you do something to stop him? >>guest: god could intervene easy. all he has to do is take away free will. if he did, to be fair he would have to take it away from all. if i got drunk tonight and got in the car crash and killed someone i don't blame god. it is my will. we are to pray the lord's prayer which says thy will be done on earth as in heaven. god's will is done perfectly and always done in heaven, and him rarely done onth. people say that must be god's will.

nonsense. god's will is testify done onth because i have a will and you have a will and we frequently choose not to do god's will. >>neil: did god see this coming? >>guest: of course god has soon it all coming, it would be like i knew when i had my children that growing up they would go through different pains and they would go through heartaches and they could make some bad choices and other people would do things against them. i still chose to have them because i love them, even knowing that because they got free will, there would be pain. the issue is, do we run to god for comfort or do we runaway from him? most people as you can see, the churches in newtown were filled last sunday because most people they run to god for comfort. there are some things we are not going to understand until we get to it turnty and get to heaven. what we need to do right now is

release our grief. receive help from others. remember what is important. and run to god. what matters most in life is relationships. i have been at death bed of thousands of people as a pastor. i have never had one person at the death bed say, bring me my trophies one more time i want to look at them. bring me my graduation certificate or stock certificates, they say bring me the people i love. we realize that what matters most are the people we love. i hope we learn it sooner. >>neil: rick warren "purpose driven life." more after this.

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>>neil: did you hear about a french actor fed up with sky-high taxes is fleeing because france will not stop hiking taxes, the massive 75 percent top tax rate for the rich includes him and he ain't happy. it is not sitting well and he is going to belgium and it is not just for the chocolates. lower tax rate. goodbye, france. rand paul not surprised. he says it will be a scene repeated here. that is what you are worried about? >>guest: money goes where it is welcome. you raise taxes high, money will go to other places. in the united states you find this, high tax states like illinois and california are seeing people leaving. we have a corporate income tax here that is 23 percent and one that is 15 percent in canada. if you have a new company you want to open up, where would you

rather open up? a company with thrive percent income tax or 15 percent? >>neil: a lot of companies do not pay that rate. i see what you are saying, it will never get down to 15 percent for some companies but it is a very high rate. when the president was talking about lowering corporate tax rates to bring more republics into a deal that would knowing personal income rates that hasn't been discussed anymore, how did you, or would you have felt? >>guest: well, the problem everything has to be some enormous deal. we can never get all the moving parts together and we head to a deadline or suddenly we do not have enough time to make a deal. separate these out into smaller pieces. lowering the corporate income tax is imperative but do not just wait for tax reform which could take a year or may never come, lower the corporate income tax. we could pass that tomorrow. >>neil: but you have to get a

deal done in 12 days. one? >>guest: something will happen. it won't be good for the country but the president will get his way. he is demanding the taxes go up and we will get a tax increase. when the economy is growing at less than 2 percent, the rate officer may bring in less revenue, it may cause less economic growth and more unemployment it will be counterproductive and the absolute wrong thing to do but he will get his way because he stubbornly wants to raise taxes. >>neil: i was with you in the rotunda a week ago, senator, and we touched on it, what is it about you guys generally, republicans and democrats, where even facing the brink, even facing what could be, some economist count inevitable recession, if a deal is done, can't you do a deal. what is it? >>guest: the recession doesn't have so much to do about the deem but it has to do with an

economy that is sluggish for many reasons, we are overregulated and overtaxed. >>neil: but any circumstance, even under the brink of war, i don't think you guys could put together an agreement on anything. >>guest: to raise taxes? >>neil: to do anything. >>guest: well you are saying we are incompetent. >>neil: incapable of doing things. >>guest: i don't want to debate the other side of that question, that is a tough question to argue the other side what i would say, we would be more confident if we structured and did committee work and we didn't wait for a deadline, if we broke up the problem into smaller pieces. immigration, for example, there are at least five different immigration bills that democrats and republicans grow but the president says he will not support any immigration reform unless he gets everything he wants. same with tax reform.

same with social security reform. break it into smaller pieces and pass what we can grow to. means testing, we can grow to that. >>neil: senator, thank you very much. just what hollywood did not want to hear, adam lanza liked very violent video games. @8

>>neil: as sandy hook community returns to normal, they are looking for clues. >> they are waiting for the medical examiner has asked a science from the university of connecticut for his help in trying to explain adam lanza's behavior and what could have led him down the path that he close on friday according to authorities when he killed his mother who was sleeping in her

own bed and went to sandy hook elementary school and began the shooting free. the medical examiner has said he doesn't know if lanza had asperger syndrome which is in the autism spectrum but does not think it is a factor but it is not associated with violence typically. the motive for killing his mother and the others may already be known according to a young marine who has lived here in sandy hook his whole life. he said that adam found out his mom landed to have him committed to a psychiatric institution and that sent him to a tailspin and he was very angry about the plans and according to the source adam was very jealous of his mother's time she spent volunteering with the students. a source said that police are considering this could be a possible motive that adam lanza was upset of his mother planning

to commit him to a psychiatric institution. the funerals continue, the heartbreaking services here in town and around town, and across the state, for all of the victims of the shooting last friday, including three elementary school students today including seven-year-old who wanted to grow up to be a firefighter. this was a powerful display as firemen from across the state and from new york lined the streets and two young girls, charlotte and care -- caroline, both lost their lives and we heard about the teacher, victoria soto, a hero, who moved kids to a closest or bathroom and said that the kids were in the gym and he gunned the 27-year-old teacher down if the choose room. another sermon going on this hour to remember dawn hochsprung, the principal, of sandy hook elementary school,

who cut down far too soon, the funerals continue. this are four more tomorrow including two for the elementary school kids. >>neil: for those kids, they are not going to return to school until january. where will they go, do you know? >>guest: they found another school in another town about seven miles away, a middle school, that was closed for a variety of reasons, and they brought in a bunch of tradesmen and they went to sandy look and loaded moving van after moving van with the class supplies and decks and chairs and they moved the supplies to this new school seven miles away. they will let parents go in there and bring their kids to get the feel of the place, and on january 2, the survivors will go back to school at chalk hill. >>neil: thank you. we give you always impossible assignments but you always

handle them with dignity and sensitivity. >> the questions being asked, did a madman get that way playing violent video game service reports that adam lanza was obsessed with them and now no less than west virginia senator rockefeller asking congress to at least assess the impact of them. a video game developer says games are not a problem but make an overly medal some congress could be. what do you make of this move by the except to assess games or the industry and now is the time to go ahead with this. >>guest: speaking for myself, i would like to say owe hearts go out to the families and to a grieving nation. as for funding a study, i welcome personally, any study into video games, into anything that can help our country to

learn more about who we are as people and the kind of entertainment we like. i am not afraid of studies. 9 more information we have, the more good solid research we have, the better, but every study every credible study so far has never been proven to be a causal link between violent video games and real world violence. >>neil: what has come up we have a rating system to video games based on violence or any other thing that would be deemed severe, and this was the case of a 20-year-old man who could have been playing video games since he was a kid but he is a grown man. how do you police that? >>guest: when you say "police" you are going down a risky road to police what adults are allowed to view. some people say that news television is, and newspapers are guilty of hardening society by showing war and by showing

heinous events. i am sure you would agree that it is very risky to start talking about listing that. >>neil: but that is real. your stuff is not. >>guest: well, health me give you another perspective. psychologists tell us a way that children and adults deal with difficult and complex feelings like fear is to engage in play with the images. very young children play bang, bang without being told to play bang, bang, and psychologists say they do this because maying with that kind of fear some images of hurting, of being weak and powerless, of killing someone or dying, that helps a child to understand and cope with the difficult feelings. video games have been then to is the same kind of --. >>neil: you do not find a virtue in the more violent games? >>guest: what i would say is, even in violent video game play,

i know from many, many people playing them, they say when they feel stress or tensor angry, upset, unable to cope, they play a violent video game they family relaxed and destressed and more able to cope. this is common. this happens constantly. >>neil: we will see. >>guest: remembers all of history people have been attracted to stories of violence. >>neil: they have indeed. they have indeed. more after this. ato, obviously. haha. there's more than that though, there's a kick to it. wahlalalalallala! smooth, but crisp. it's kind of like drinking a food that's a drink, or a drink that's a food, woooooh! [ male announcer ] taste it and describe the indescribable. could've had a v8.

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>>neil: the treasury is

agreeing to sell 200 million shares g.m. to get out of the automotive business but taxpayers will lose tens of billions before it is said and done. and let's just say that got my guest revved up. >>guest: this is a great day for mechanic, we are selling off the ownership of a car company. i guess you could call it a privatization but we probably never should have bought it in the first place. >>neil: they brought an automaker back so the argument is money worth the price. >>guest: what we are lending is the losses from what we paid for the stock and what we are selling it for is $5 billion do $10 billion and we will own the financing company of g.m. which is probably another $5 billion in losses so these are significant losses. i make the case that the real cost of the bailouts and not just of the two auto companies but the insurance companies and

the banks, we have instilled in the minds of owners of companies, of major corporations in america, and on wall street, that american corporations, big ones, are too-big-to-fail. that is a very negative effect on the behavior of the companies and creates an unlevel playing field. it will take a long, long time, if ever, to get rid of that perception that a major american corporation is too-big-to-fail. >>neil: i don't know if we have gotten over that. there is a danger, you know, too-big-to-fail and we went too many to ignore, and i am wondering, if g.m. were on the brink again in a few years, would we rescue it? should we? >>guest: those are two questions. would we? we would. we have established the precedent that big company lake g.m., we have creates a big

social safety net under all the major banks. >>neil: ford welcomed it because they thought it would strangle their own suppliers and there was a non-bailed out company saying better bail them out. >>guest: the interesting thing is, ford is an example of a company that did the right thing, they did not, it was in financial trouble, as well, in 2008 and 2009 and they did not take taxpayer bailout money and they are doing fine and it is a profitable company. remember that. the point is, this creates kind of a perversion of the capitalist system, we have crony capitalism in washington. every distressed company now rushes to washington, dc, for a bailout, and the little guys, the banking tremendous is an example. the little banks are the ones paying the cost of the big banks getting this big protection from government. i am a capitalist and i don't like this. >>neil: more after this.

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>> neil: so finally, let me see if i got this right. republicans hang tough on spending. democrats hang tough on not cutting too much spending, they're not obstinate. and republicans are dogged to keeping tax to minimum, they are blocking a deal. democrats equally dogged, but they're not blocking the deal. republicans are obstructionists because they don't agree with the president. democrats are not because they do. republicans are not serious about raising taxes when they just proposed that. they say there are fears of cutting spending but haven't offered much of that. so congress has war paint but not the president. it is understandable for the

president to use the bully pulpit to push his case but it does not give him a right if the other side doesn't have a case. or is blocking a deal. nor does the president use shooting in connecticut to make a case for his deal right now. is he saying his deal is the only deal that is important? is he using a shooting. to shoot down the approach the other side is taken? i hope not. all political stripes were shocked by what happened with last week. the president is quite right